There has always been a high demand for gold since times immemorial. Investing in gold is widely practiced among people all over the nation. There are various reasons why buying gold is considered to be beneficial. We believe that buying physical gold is more profitable than gold jewellery. We have discussed below the reasons why is buying gold coins so widely practiced:
Gold coins are tangible
A gold coin can be held physically. It can be touched and felt. Especially among Indians, nothing comes close to physical touch. And gold coins give us that feeling. Unlike most other forms of investment, gold is the only tangible item. Gold coins cannot be damaged by water, fire, or time. Also, they don’t need to be maintained or fertilised. In today’s digitalised world, it’s a judicious thing to invest in something outside the digital form. If any day the internet crashes, these gold coins would remain unaffected.
- Gold rises when the market falls
When the prices of crude oil fall or when the stock market crashes due to any macroeconomic reasons, the demand and price of gold moves upwards. For example, the prices of gold rose from $ 869 in 2008 to $ 14.05 in 2010 during the crisis period. Every time the value of oil in the middle east falls due to disruption in oil supplies or stock market crashes, people rush to purchase gold, thereby increasing its demand and value subsequently.
- Gold coins are highly liquid
Gold coins are liquid and portable. It can be bought from one corner of the world and sold in any corner. You can sell it to any jeweller, pawnshop, or online dealer in return for cash. Gold also played an important role in regulating the barter system. With gold, you can exchange goods or get cash on the spot. This characteristic of gold allows it to be carried to any corner of the world. If you have to cross international boundaries with your gold, you can purchase gold you can transport.
- Gold coins are cheaper than gold jewellery
Usually, the price of gold jewellery is calculated in the following way:
Hallmarking charges+rate of gold+jewellery making charges+ GST. The current gold rate per gram is Rs. 4955. Whereas, when you buy gold coins, you don’t have to pay hallmarking charges. Not only that, only 4 to 5% making charge has to be paid when it comes to buying gold coins. Additionally, gold coins are purer than gold jewellery, thus fetching you better returns on sale.
Gold has got beneficial qualities, which is why it’s the most coveted of all metals. Investing in gold is never a bad choice. If you are investing for the short term, purchasing gold might not be profitable. But it retains its value over the long term. So if you are planning to purchase gold coins, make sure it’s for the long run. With advancing times, reliable and trustworthy dealers have come up, delivering top quality gold coins to customers online. So without thinking more, purchase gold coins from reputed stores and protect your money from sudden inflations and macroeconomic upheavals.